{"id":42867,"date":"2025-08-19T08:01:38","date_gmt":"2025-08-19T08:01:38","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=42867"},"modified":"2025-08-19T08:01:38","modified_gmt":"2025-08-19T08:01:38","slug":"south-korea-set-to-unveil-new-stablecoins-framework-in-october","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=42867","title":{"rendered":"South Korea Set To Unveil New Stablecoins Framework In October"},"content":{"rendered":"
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South Korea\u2019s financial authority is expected to release the long-awaited regulatory framework next quarter, offering clear guidelines for the issuance and distribution of won-pegged stablecoins.<\/p>\n

Stablecoin Guidelines By October<\/h2>\n

On Monday, local news media outlets reported<\/a> that South Korea\u2019s financial regulator, the Financial Services Commission (FSC), is expected to release a bill for a stablecoin pegged to the Korean won (KRW) within two months.<\/p>\n

According to MoneyToday, a member of the Democratic Party of Korea (DPK), Park Min-kyu, confirmed that he had \u201crecently received a report from the FSC on the direction of stablecoins,\u201d affirming, \u201cThe government\u2019s bill is expected to be submitted to the National Assembly around October.\u201d<\/p>\n

The bill is anticipated to be included in the second phase of the Virtual Asset User Protection Act. Notably, the FSC has been working to develop digital assets legislation and shift its regulatory approach for over a year, establishing the Virtual Asset Committee in November to prepare the next phase of its plan and finalize it by the second half of 2025.<\/p>\n

The second<\/a> phase of the Virtual Asset User Protection Act includes regulations on the distribution of digital assets and stablecoins, continuing its efforts to align with global standards. The FSC\u2019s Vice Chairman Kim So-young previously stated that the Korean government was \u201cspeeding up efforts\u201d to develop the Korean crypto market while protecting users.<\/p>\n

Attention will be focused on the content of the rules, the report affirmed, as the FSC plans to unveil a regulatory framework outlining requirements for issuing won-pegged stablecoins, collateral management, and internal control systems, which have been a concern<\/a> among both the crypto and banking industries.<\/p>\n

The FSC\u2019s Secretary-General warned in January that the regulator needed to address listing standards, how to deal with stablecoins, and how to create rules for the behavior of virtual asset exchanges.<\/p>\n

Meanwhile, the banking sector has been studying two legalization scenarios, since it remains unclear whether non-bank entities will be allowed to be stablecoin issuers. Financial institutions have also been considering a business model in which banks establish a joint venture to issue stablecoins.<\/p>\n

Stablecoins\u2019 Momentum In South Korea<\/h2>\n

As the new media outlet noted, institutionalization of won-pegged stablecoins has gained significant attention after President Lee Jae-myung pledged it during his presidential campaign. The electoral promise, which also vowed to address the status of crypto-based exchange-traded funds (ETFs), followed the US\u2019s regulatory shift under the Trump administration and its push for USD-pegged stablecoins, which currently lead the sector.<\/p>\n

Previously, the chairman of the South Korea Stock Exchange, Jeong Eun-bo,\u00a0urged authorities to institutionalize<\/a> crypto in the country, noting that the Korean market needs to be revitalized to compete with other nations and prevent falling behind international markets.<\/p>\n

Over the past two months, multiple bills related to the issuance and distribution of KRW-pegged stablecoins have been introduced in South Korea\u2019s National Assembly. As reported<\/a> by Bitcoinist, Korea\u2019s ruling and opposition parties proposed rival bills in July to establish the highly anticipated regulatory framework for digital assets pegged to the Korean won.<\/p>\n

Member of the Planning and Finance Committee from the Democratic Party, Ahn Do-gil, introduced the \u201cAct on the Issuance and Distribution of Value-Stable Digital Assets,\u201d while member of the Land, Infrastructure, and Transport Committee from the People Power Party (PPP), Kim Eun-hye, proposed the \u201cAct on Payment Innovation Using Value-Fixed Digital Assets.\u201d<\/p>\n

Both bills share several similarities, including the assignment of stablecoin oversight to the Financial Services Commission (FSC).\u00a0However, the two proposed legislation differ in the issue of interest payments, with the PPP\u2019s bill allowing interest payments and the DPK\u2019s bill completely banning interest payments to prevent market disruption.<\/p>\n

Min Byung-deok, a member of the National Assembly\u2019s Government Committee, also introduced the \u201cDigital Assets Basic Act\u201d in June, which proposes allowing the issuance of won-pegged stablecoins and establishing a Digital Asset Committee under the direct authority of the president.<\/p>\n

Amid the global push for stablecoins, Korean individuals investing in overseas stocks have reportedly<\/a> shifted from US big tech equities to crypto-linked stocks, with a focus on stablecoin-related companies throughout July, suggesting growing interest in the sector.<\/p>\n

\"stablecoins,<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

South Korea\u2019s financial authority is expected to release the long-awaited regulatory framework next quarter, offering clear guidelines for the issuance and distribution of won-pegged stablecoins. Stablecoin Guidelines By October On Monday, local news media outlets reported that South Korea\u2019s financial regulator, the Financial Services Commission (FSC), is expected to release a bill for a stablecoin […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-42867","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/42867","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=42867"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/42867\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=42867"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=42867"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=42867"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}